Perhapi optimistic KCMI to be validated in next 3 months

By Bambang Atmaja

Indonesian Mining Expert Association (Perhapi) is optimistic that the minister regulation (permen) that will validate Indonesia's mineral reserves code (KCMI) can be issued within 2 or 3 months time as there has been no more serious problem in the process of the issuance.

Budi Santoso chairman of working group on mineral policy of Perhapi said Thursday that he and the association already saw the draft of the rule and it was principally inline with the goals of the association.

"The director general (at ESDM) gives us deadline to comment on the draft on June 3. We will give comments? principally it (the draft) is OK, the content is in line (with us)," he said.

"Then (the government) is only to endorse the draft. I think it is not going to be long, may be within two or three months the minister regulation is going to be issued," he said.

The standard would boost confidence of investors, banks, public on the country's mining sector which will pave way for financing, according to Budi.

He also said that the issuance of the KCMI would allow mining companies under exploration stage to be able to list their shares on the bourse on the condition that they would have validated mineral reserves.

He added that after the validation, the firms already listed on the bourse must have KCMI standard otherwise they would be de-listed, said Budi.

"The firms conducting exploration can go public, (after the validation). So far (under the current condition without KCMI), they can not," he said.

Editing by Reiner Simajuntak